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REITs

Indian Real Estate Investment Trusts – Where They Are Now

– by Shobhit Agarwal With the Indian real estate sector in the throes of a severe liquidity crunch, Real Estate Investment Trusts or REITs offer a funding lifeline to foreign and domestic investors to pump badly-needed money into the market. The overwhelming response to the launch of India’s first REIT by Embassy Office Parks – and its superlative performance – have propelled India into the league of mature markets of developed nations with a proper REIT structure in place. Global investors have had their sights set on India’s burgeoning commercial real estate market for some time. With the success of the Blackstone-Embassy REIT, a positive signal has gone out to all global investors to stake their claim. At the same time, REITs have opened fresh possibilities and new inv...

Union Budget 2019 Boost To Real Estate: Affordable Housing Gets New Lease Of Life

Union Finance Minister Nirmala Sitharaman, while presenting her maiden budget and the first budget of Modi 2.0 government, announced an additional rebate of Rs 1.5 Lakh on Housing Loan Interest. Being considered as a big boost to the real estate sector, this step will encourage first-time homebuyers and will enhance sales. Currently, this rebate was limited to Rs 2 Lakh only. So with this announcement, a housing loan for a home valued up to Rs 45 Lakh, the homebuyers will now avail a rebate of Rs 3.5 lakh on the home loan interest amount. This benefit will be available for home loans taken till March 2020 The Finance Minister also proposed some relief to non-banking finance companies that are facing a crisis of confidence after banks showed reluctance in lending them following the recent I...

Real Estate Budget Wish List: Pass on tax benefits to boost large-scale housing development

by Anshuman Magazine The Indian realty sector expects some more favorable SOPs and policies to be introduced by the newly re-elected government in this Union Budget 2019-20. Riding on strong regulatory mechanisms introduced in the previous term such as RERA (Real Estate Regulatory Authority Act), GST (Good and Service Tax) and Insolvency and Bankruptcy Code (IBC) and numerous initiatives for the affordable housing sector, the realty sector has made great strides and has witnessed an improvement in overall industry performance. While the Modi-led government in its last term had introduced several reformative measures with the overarching aim to revive the sector, some measures are still awaited with respect to mitigating impending challenges related to fundraising, capital, and liquidity. I...

Pre Budget Expectation ~ Surendra Hiranandani, Founder & Director, House of Hiranandani

Surendra Hiranandani We hope for measures that will enhance the overall economy instead of specific sectors. Also, the announcements must be backed by concrete plans to ensure that the benefits are percolated to the consumers. From a real estate standpoint, the last year was largely spent getting acclimatized to the new policies which ushered better transparency and accountability in the sector. While the Government has taken several concrete measures, there is still a long way to go. We hope that the government looks into some of the key concerns raised by the industry and addresses the same soon. The Indian real estate sector is the most highly taxed with the combination of high direct and indirect taxes, stamp duties and levies for development approvals. These extraordinarily high taxes...

Indian Commercial Real Estate Beckons NRIs

 Shajai Jacob, CEO – GCC (Middle East) – ANAROCK Property Consultants India’s commercial office property asset class presents a profitable alternative for NRI investors looking at maximising returns and generating fixed income while simultaneously maintaining a low-risk investment profile. The attractiveness of good capital appreciation, as well as rental yield, has increased NRI inventor demand for Grade A offices, IT parks, logistics centres – and now REITs as well. A good commercial property can give an average rental yield of 6-10% and the current rental yield from residential property is a mere 1.5-3.5%. The same growth range holds true for capital appreciation. The upsurge of India’s commercial office market began in 2017 and has been further boosted by the ar...

The Future of the Commercial Indian Real Estate Sector – RealtyMyths

by Mr Arnab Ghosh, Director, Synergy Property Development Service The commercial real estate sector in India is predicted to grow in the coming years; this upward trend specific to the sector has been further accelerated by large scale investments by institutional investors. These have helped consolidate the sector and bring in much-needed order to the field. The commercial real estate market remains a strong beneficiary of India’s economic growth. The commercial segment has been greatly boosted by government initiatives such as Make in India and other reforms in the realty sector such as the introduction of the Real Estate Regulatory Authority (RERA) and GST. Despite their initial troubles, developers and buyers have now hailed the move due to the resulting transparency and competence of ...

Govt seeks help to improve voting | Weekly News Roundup – RealtyMyths

Hi guys! Welcome back to the weekly news roundup! Let’s get started Supreme Court dismissed a petition challenging the construction of a memorial for former Tamil Nadu chief minister Jayalalithaa at Chennai’s Marina beach, on April 22, 2019. The Delhi High Court seeks the National Highways Authority of India’s (NHAI’s) response on a plea to ensure basic amenities, like toilets, petrol pumps, ambulance and emergency facilities, on the Eastern and Western Peripheral Expressways. The Environment Ministry has issued a show-cause notice to the firm operating the Okhla waste-to-energy plant in south-east Delhi, for violation of rules. The notice asked the company to respond within 15 days The Maharashtra government seeks the help of the office-bearers of housing societies, to spread voter awaren...

What ROI can One Expect from REITs? – RealtyMyths

Shobhit Agarwal, MD & CEO – ANAROCK Capital About 50% of India’s total office stock is REITable – up from 30% in 2 years Projected 5-year returns on commercial assets are 14% REITs could further percolate down to other asset classes like retail and logistics The listing of India’s first REIT by Blackstone-backed Embassy Group has been in the offing for quite some time, but it now it will finally be listed and open for investment on 18 March 2019. As REITs get officially deployed in India, investors hoping to cash on this new avenue for generous ROI growth seek to understand what exactly is in store for them – and for the real estate market. As with any other investment platform, REITs have their own nuances and also issues, especially in the Indian context. Obviously, the industr...

50% of Indian Office Stock Qualifies for REITs

About 50% of India’s total office stock is REITable – up from 30% in 2 years Low returns, lack of sound rental policy eliminated residential’s REITs candidature Projected 5-year returns on commercial assets is 14% The listing of India’s first REIT by Blackstone-backed Embassy Group has been in the offing for quite some time, but it now finally appears that it will be listed within the first half of 2019. As REITs await their official deployment in India, investors hoping to cash on this new avenue for generous ROI growth seek to understand what exactly is in store for them – and for the real estate market. As with any other investment platform, REITs have their own nuances and also issues, especially in the Indian context. Obviously, the industry at large has a lot of skin in the gam...

Future Impact of REITS on Commercial Real Estate in India

by Akhilesh K Prasad The real estate sector had hit a period of a slump lately. To boost it, the central government hurried the process of reforms. The Real Estate (Regulation and Development) Act and the Benami Transactions Prohibition Act were enacted to organize the previously informal real estate sector and curb the flow of black money respectively. The move has also brought about transparency promoted the adoption of global best practices. In keeping with this broader perspective, the Securities and Exchange Board of India (SEBI) has amended the SEBI (Real Estate Investment Trusts) Regulations 2016 (REIT Regulations) and the SEBI (Infrastructure Investment Trusts) Regulations 2014 (InvIT Regulations). The changes brought about by the SEBI are expected to lower the costs associated wit...

How Policy Interventions helped the Resale Property Market

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants 10-12% increase in the number of buyers in the secondary real estate since DeMo Property values in secondary market reduced by as much as 5-10% over primary market The issue of transparency in secondary or resale real estate transactions has indeed been on everyone’s minds ever since RERA stepped in to rescue the primary or first sale-by-developer market. The question that looms large is – have the Government’s moves to clean up the sector benefited the resale (or secondary sales) market as well? Overall, the Central Government has put in tremendous efforts towards creating a healthier and regulated real estate market environment. Implementation of policies like DeMo, RERA, GST, REITs, the Benami Transactions (Prohibition) ...

What Indian real estate needs from Union Budget 2018-19

Anuj Puri, Chairman – ANAROCK Property Consultants Every year, the Union Budget presents the Government with an opportunity to tweak the direction that the Indian economy is taking. Sometimes, hard decisions are taken which, while necessary, do not necessarily go down well with Mr. Everyman. At other times, the Union Budget is clearly meant to be a crowd-pleaser. This invariably happens when an incumbent Government is finishing its term and general elections loom, for obvious reasons. The current Government has done a lot for the Indian real estate industry, even when it was in the form of hard decisions like demonetization and the disruptive but very necessary RERA. With the hard decisions now taken, the Indian real estate sector fervently hopes that it is at the receiving end of th...

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